Port of Santos concession period expanded to 50 years

The concession period of the Santos Port Authority (SPA), initially planned to be 35 years, should now increase to 50 years. The privatization report will likely be delivered to Brazil’s audit court TCU by mid-September – the previous deadline was the end of August. According to the Federal Government, the port authority’s auction should occur in the second half of December as previously envisioned.

The information above was confirmed by the National Secretary of Ports and Waterway Transportation of the Ministry of Infrastructure, Mario Povia. As for altering the concession period, news agency A Tribuna had already reported such a possibility on June 1st.

According to Povia, the proposal to change it to 50 years came from the Minister of Infrastructure, Marcelo Sampaio, who received requests during the Ministry’s roadshow abroad. “The financial value that [the future Port of Santos manager] will invest over the concession period will be decided based on estimated operational expenses during the newly added period,” he commented.

On a different note, Mario Povia confirmed that his Ministry is looking into two different strategies for determining maximum company participation; the first is similar to the approach used in the privatization of Companhia Docas do Espirito Santo (Codesa), with maximum participation of 15% for a single company and 40% if companies form a consortium. The other option is 5×100, in which all SPA would be distributed to companies with 5% each.

According to the Ministry of Infrastructure, the Brazilian Development Bank (BNDES) is tweaking the privatization draft soon after submitting the report to the Brazilian Court of Accounts (TCU). The call for bids will be published upon the audit court’s approval.

See below the track record of container exports and imports at the Port of Santos from January 2019 to June 2022. The data is from the platform DataLiner developed by Datamar.

Container throughput at the Port of Santos | Jan 2019 – Jun 2022 | TEUs

Source: DataLiner (click here to request a demo)

Investment

According to the Ministry of Infrastructure, projected investments should reach BRL 16 billion, in addition to generating 60 thousand jobs directly and indirectly.

Source: A Tribuna

To read the full original article, please go to: https://www.atribuna.com.br/noticias/portomar/periodo-de-concessao-do-porto-de-santos-deve-subir-para-50-anos

Sharing is caring!